Answer:
$12
$20
Explanation:
contribution margin = price - variable cost
20 - 8= 12
24 - 4 = 20
Poe Company is considering the purchase of new equipment costing $81,500. The projected net cash flows are $36,500 for the first two years and $31,500 for years three and four. The revenue is to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Poe requires a 10% return on its investments. The present value of an annuity of 1 and present value of an annuity for different periods is presented below. Compute the net present value of the machine.
Answer:
$27,028.45
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.
When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.
Cash flow in year 0 = $-81,500
Cash flow in year 1 and 2 = $36,500
Cash flow in year 3 and 4 = $31,500
I - = 10%
NPV = $27,028.45
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
1. Offering a credit customer a discount after the sale has occurred is a way to?
Answer:
hope it helps you:)
Explanation:
god blessed
Pencils sell for 10 cents and pens sell for 50 cents. Suppose Jae, whose preferences satisfy all of the basic assumptions, is currently spending all his income on both goods. The marginal rate of substitution for pens to pencils is 5. In order to achieve optimum, what should he do
Answer:
Jae should do nothing and continue purchasing the same amount of pens and pencils.
Explanation:
The current rate of substitution that maximizes Jae's utility is Px / Py = 0.50 / 0.10 = 5. That means that Jae will purchase 5 pencils for every pen that he buys, and that is exactly what he is doing right now.
one markeitng action that can be taken to sell a single product or service to muylpele market segments is to
Answer: C. develop separate promotional campaigns.
Explanation:
Different market segments will have different norms and values that companies will have to take advantage of in order to sell their goods or services.
They will therefore need to develop separate promotional campaigns that are aimed at taking advantage of these norms and values in order to appeal to the people in the different segments.
Assume that EEG Company wanted to reduce the cost of materials handling in each of its stores, and management set a target reduction of 2 percent per year. If a given store has current annual materials handling costs of $200,000 and expected an increase next year due to 15 percent growth, the budget for next year would be: A. $230,000 B. $216,000 C. $196,000 D. $225,400
Gotham City acquires $25,000 of inventory on November 1, 20X7, having held no inventory previously. On December 31, 20X7, the end of Gotham City's fiscal year, a physical count shows $8,000 still in stock. During 20X8, $6,500 of this inventory is used, resulting in a $1,500 remaining balance of supplies on December 31, 20X8.
Based on the preceding information, what would be the correct account balances for 20X7 if Gotham City used the purchase method of accounting for inventories?
Answer:
$25,000; $8,000
Explanation:
Based on the information given , we were told that they acquires the amount of $25,000 of inventory on NOVEMBER 1, 20X7, in which on DECEMBER 31, 20X7, a PHYSICAL COUNT shows $8,000 was still in stock which means wthat the CORRECT ACCOUNT BALANCES for 20X7 if Gotham City used the PURCHASE METHOD of accounting for INVENTORIES will be Expenditure of the amount of $25,000 and Inventory of supplies of the amount of $8000.
Granfield Company is considering eliminating its backpack division, which reported an operating loss for the recent year of $41,500. The division sales for the year were $950,500 and the variable costs were $470,000. The fixed costs of the division were $522,000. If the backpack division is dropped, 40% of the fixed costs allocated to that division could be eliminated. The impact on Granfield's operating income for eliminating this business segment would be:
Answer:
The impact of eliminating the backpack division
Particulars Amount
Decrease in contribution margin $480,500 ($950500-$470,000)
Decrease in Expenses:
Fixed expenses $208,800 ($70522,000*40%)
Decrease in Net operating income $271,700 (Financial disadvantage)
Lancashire Railway Company (LRC) has two divisions, L and H. Division L is the company’s low-risk division and would have a weighted average cost of capital of 8% if it was operated as an independent company. Division H is the company’s high-risk division and would have a weighted average cost of capital of 14% if it was operated as an independent company. Because the two divisions are the same size, the company has a composite weighted average cost of capital of 11%. Division H is considering a project with an expected return of 12%. Should Lancashire Railway Company (LRC) accept or reject the project?
Answer:
Lancashire Railway Company (LRC)
Lancashire Railway Company (LRC) should reject the project. The basis for rejecting Division H's project is that its return (12%) is less than the risk-based cost of capital for the division (14%).
Explanation:
a) Data:
Division L's weighted-average cost of capital = 8%
Division H's weighted-average cost of capital = 14%
Weight of Division L = 50%
Weight of Division H = 50%
Company composite weighted average cost of capital = 11% (8% * 50%) + (14% * 50%)
Expected return from a proposed project for Division H = 12%
For most goods in an economy, the primary signal that guides the decisions of buyers and sellers is a. quality. b. advertising.
Answer:
There will be more options than 2 of them. Probably it was a brainly error.
For most goods in an economy, the primary signal that guides the decisions of buyers and sellers is price.
The calculation of WACC involves calculating the weighted average of the required rates of return on debt and equity, where the weights equal the percentage of each type of financing in the firm's overall capital structure.
(rstd, rps, rs, rd)
_______ is the symbol that represents the required rate of return on short-term debt in the weighted average cost of capital (WACC) equation.
Co. has $2.3 million of debt, $1 million of preferred stock, and $2.2 million of common equity. What would be its weight on debt?
a. 0.42
b. 0.18
c. 0.40
d. 0.16
Answer:
a. 0.42
Explanation:
Calculation to determine What would be its weight on debt?
First step is to calculate the Total firm capital
Total firm capital= $2.3 + $1 + $2.2
Total firm capital= 5.50 million.
Now let determine the weight on debt using this formula
Weight on debt= Debt in the firm/ Total firm capital
Let plug in the formula
Weight on debt = $2.3 million/ 5.50 million
Weight on debt = 0.4182.
Weight on debt=0.42 (Approximately)
Therefore What would be its weight on debt is 0.42
If the price per unit were doubled at the same time that the variable cost per unit was doubled, the break-even point would be:
Answer:
halved
Explanation:
Breakeven quantity are the number of units produced and sold at which net income is zero
Breakeven quantity = fixed cost / price – variable cost per unit
Assume fixed cost is initially 1000 units, price is 10, variable cost is 5
breakeven quantity = 1000 / (10 - 5) = 200
assume price per unit were doubled at the same time that the variable cost per unit was doubled
1000 / ( 20 - 10) = 100
breakeven point is halved
A company uses the periodic inventory method and the beginning inventory is overstated by $9,000 because the ending inventory in the previous period was overstated by $9,000. The amounts reflected in the current end of the period balance sheet are
Answer:
"Correct Correct" is the right answer.
Explanation:
Overall inventory will be calculated by means including its physical computing mechanism at either the conclusion of each accountability conscious cognitive mostly on periodical inventory or purchasing department.Excessive conclusion or termination creates excessive starting inventory thresholds or their levels.A multidomestic corporate-level strategy has ____ need for global integration and ____ need for local market responsiveness. Group of answer choices
Answer:
low; high
Explanation:
In the case of the multidomestic corporate level strategy there is less need for the integration that occurred globally and at the same time there is high requirement for the response made to local market
So as per the given situation, the blanks could be filled with the low and high options
ANd, the same is to be considered
Camaro GTO Torino Cash $ 2,000 $ 110 $ 1,000 Short-term investments 50 0 580 Current receivables 350 470 700 Inventory 2,600 2,420 4,230 Prepaid expenses 200 500 900 Total current assets $ 5,200 $ 3,500 $ 7,410 Current liabilities $ 2,000 $ 1,000 $ 3,800 Compute the current ratio and acid-test ratio for each of the following separate cases.
Answer:
Current Ratio :
Camaro = 2.6
GTO = 3.5
Torino = 1.95
Acid Test Ratio :
Camaro = 1.3
GTO = 1.08
Torino = 0.84
Explanation:
The current ratio and acid-test ratio for each of the following separate cases will be as follows
Current ratio = Current Assets ÷ Current Liabilities
Camaro = 2.6
GTO = 3.5
Torino = 1.95
Acid Test Ratio = (Current Assets - Inventory) ÷ Current Liabilities
Camaro = 1.3
GTO = 1.08
Torino = 0.84
On December 31, 2016, Bart Inc. purchased a machine from Fell Corp. in exchange for a noninterest-bearing note requiring eight payments of $20,000. The first payment was made on December 31, 2016, and the remaining seven payments are due annually on each December 31, beginning in 2017. At the date of the transaction, the prevailing rate of interest for this type of note was 11%. Present value factors are as follows: Period Present value of ordinary annuity of 1 at 11% Present value of an annuity due of 1 at 11% 7 4.712 5.231 8 5.146 5.712 The initial value of the machine is
Answer:
Bart Inc.
The initial value of the machine is:
= $114,240.
Explanation:
a) Data and Calculations:
Date of purchase of machine from Fell Corp. = December 31, 2016
Annual payments for a non-interest-bearing note = $20,000
Appropriate present value of the annuity due = 5.712
PV of the annual payments for 8 years = $114,240 ($20,000 * 5.712)
First payment date = December 31, 2016
Period of payments = 8 years
Prevailing interest rate for this type of note = 11%
Check from an online financial calculator:
N (# of periods) 8
I/Y (Interest per year) 11
PMT (Periodic Payment) 20000
FV (Future Value) 0
Results
PV = $114,243.93
Sum of all periodic payments = $160,000.00
Total Interest = $45,756.07
Research on a Philippine company that filed for bankruptcy, what type of bankruptcy they filed, and its effect on the company?
Answer:
There are various reasons when a company files bankruptcy. When a company debtors raise above its assets, the company may claim bankruptcy. The business of a company will then seize when it files bankruptcy.
Explanation:
When a company files bankruptcy, its operations are closed and then analysts visit to identify worth of company's existing assets and analyze whether these assets are enough to pay off liabilities. Debtors are paid first and then with any left over amount investors are paid back.
A skilled carpenter installed a roof on a new administrative building for a private not-for-profit free of charge. The not-for-profit would have had to pay $2,300 for this service if not donated. What entry should the not-for-profit make
Answer and Explanation:
The journal entry should the not for profit make is given below;
Capital Expenditures $2,300
Contribution revenue $2,300
(Being the capital expenditure is recorded)
here the capital expenditure is debited as it increased the expenses and credited the contribution revenue as it also increased the revenue
Zero-coupon risk-free bonds are available with the following maturities and yield rates (effective, annual):
Maturity(in years) Yield %
1 6
2 6.5
3 7
You need to buy corn for producing ethanol. You want to purchase 10,000 bushels one year from now, 15,000 bushels two years from now, and 20,000 bushels three years from now. The current forward prices, per bushel, are $3.89, $4.11, and $4.16 for one, two, and three years respectively. You want to enter into a commodity swap to lock in these prices. Which of the following sequences of payments at times one, two, and three will NOT be acceptable to you and to the corn supplier?
a. $38,900; $61,650; $83,200
b. $39,083; $61,650; $82,039
c. $40,777; $61,166; $81,554
d. $41,892; $62,340; $78,997
e. $60,184; $60,184; $60,184 73.2
Answer:
e. $60,184; $60,184; $60,184
Explanation:
Corn supplier will have yields of 6 in year 1 and 6.5 in year 2, if it will purchase bushels now he will have to pay $39,083 now or $38,900 2 years later. The corn supplier will not accept the price below this and we will not pay price above this. The Medicare price should be determined and set.
11. (-/1 Points] DETAILS BRECMBC9 5.11.010.
MY NOTES
Set up and solve an equation for the following business situation.
Pitt's Pit Stop sold $16,003.50 worth of gasoline yesterday. Regular sold for $3.30 a gallon and premium sold for $3.45 a gallon. If the station sold 370 more gallons of regular than premium, answer the
following questions.
(a) How many gallons of each type of gasoline were sold?
regular
gal
premium
gal
(b) If the profit on regular gas is $0.15 per gallon and on premium is $0.18 per gallon, what was the station's total profit (in dollars)?
$
Answer:
2190 ; 2560 ;
$778.2
Explanation:
Total worth of gasoline sold = 16003.50
Cost of regular = 3.30
Cost of premium = 3.45
Let :
premium Gallon sold = x
Regular gallon sold = 370 + x
Hence, mathematically;
(3.45*x) + (3.30 * (x + 370)) = 16003.50
3.45x + 3.30x + 1221 = 16003.50
6.75x = 16003.50 - 1221
6.75x = 14782.5
x = 14782.5 / 6.75
x = 2190
Premium Gallon sold = 2190 gallons
Regular gallon sold = 2190 + 370 = 2560 gallons
Profit per regular gallon sold = $0.15
Progit per premium Gallon sold = $0.18
Total profit = (2190 * 0.18) + (2560 * 0.15) = $778.2
Dake Corporation's relevant range of activity is 2,300 units to 5,500 units. When it produces and sells 3,900 units, its average costs per unit are as follows:
Average Cost per Unit
Direct materials $ 6.80
Direct labor $ 4.00
Variable manufacturing overhead $ 1.55
Fixed manufacturing overhead $ 2.50
Fixed selling expense $ 1.15
Fixed administrative expense $ 0.85
Sales commissions $ 0.95
Variable administrative expense $ 0.85
If 2,900 units are produced, the total amount of direct manufacturing cost incurred is closest to:
a. $39,875
b. $31,320
c. $35,815
d. $43,065
or each of the following situations, indicate the liability amount, if any, that is reported on the balance sheet of Bloomington Inc. at December 31, 2019. Next to each situation, enter the liability amount reported on Bloomington's balance sheet. If the amount is not reported as a liability, enter zero as your answer. a. Bloomington owes $220,000 at year-end 2019 for inventory purchase. Answer b. Bloomington agreed to purchase a $28,000 drill press in January 2020. Answer c. During November and December of 2019, Bloomington sold products to a customer and warranted them against product failure for 90 days. Estimated costs of honoring this 90-day warranty during 2020 are $3,100. Answer d. Bloomington provides a profit-sharing bonus for its executives equal to 5%
Answer:
Bloomington Inc.
Indication of Liability Amount on the Balance Sheet at December 31, 2019:
Situation Liability Amount
a. $220,000
b. $0
c. $3,100
d. $0
Explanation:
For Bloomington to recognize a liability or record it in its financial statements, the probability that an outflow of economic resources will occur in the future must be established. Bloomington must also be able to reliably measure the amount of the liability. These two conditions are satisfied in situations A and C. For situation B, the contract is not in force as at December 31, 2019, since the drill press will be purchased in January, 2020. Lastly, for situation D, the amount of the profit-sharing bonus cannot be reasonably and reliably ascertained because the amount to apply the 5% is not clear or known.
If the percentage increase in price is 15 percent and the value of the price elasticity of demand is -3, then quantity demanded?
a. Will increase by 45 per cent
b. Will increase by 5 per cent
c. Will decrease by 45 per cent
d. Will decrease by 5 per cent
Answer:
what is the question and where areu from
Use the model developed in Chapter 3 and assume that consumption does not depend on the interest rate. Holding other things constant, when the government lowers taxes on business investment, thus increasing investment demand, the quantity of investment: Group of answer choices and the interest rate are both unchanged. increases and the interest rate rises. decreases and the interest rate rises. is unchanged and the interest rate rises.
Answer: increases and the interest rate rises.
Explanation:
As a result of the increase in a demand for investment, entities will borrow more money from financial institutions in order to undertake these investments.
Investments will therefore rise as a result. Unfortunately, due to the increase in demand for loanable funds from financial institutions, interest rates will rise as well to show that demand is increasing faster than supply of loanable funds as posited by the law of demand and supply.
Kuley plans to retire in 8 years with $263,700 in her account, which has an annual return of 8.17 percent. If she receives annual payments of X, with her first payment of X received in 8 years and her last payment of X received in 15 years, then what is X, the amount of each payment
Answer:
Kuley
If she receives annual payments of X, with her first payment of X received in 8 years and her last payment of X received in 15 years, then the amount of each payment is:
X = $50,944.35
Explanation:
a) Data and Calculations:
Amount in savings account in 8 years' time = $263,700
Annual return rate = 8.17%
Period of savings from Year 8 to Year 15 = 7 years
Annual payments = X
X = $50,944.35
From an online financial calculator, the payment is determined as follows:
N (# of periods) 7
I/Y (Interest per year) 8.17
PV (Present Value) 263700
FV (Future Value) 0
Results
PMT = $50,944.35
Sum of all periodic payments $356,610.45
Total Interest $92,910.45
Sassy, Inc. needs $115 million to build a new distribution center. If it issues common stock to raise the funds, the issuance costs will be 8 percent of the total amount issued. If Sassy can issue stock at $40 per share, how many shares of common stock must be issued so that it has $115 million after flotation costs to use to fund the construction of the distribution center
Answer: 3,125,000 shares.
Explanation:
The number of shares of common stock that must be issued will be calculated as follows:
Let the amount to be raised be represented by x. Therefore,
x - (8% × x) = $115 million
x - (0.08 × x) = $115 million
x - 0.08x = $115 million
0.92x = $115 million
x = $115 million/0.92
x = $125 million
Then the number of shares that'll be issued will be:
= Amount raised / Issue price of stock.
= $125 million / 40
= 3,125,000 shares.
The purpose of a college degree is to give you priority over all professional opportunities.
A
True
B) False
Answer:
A) TrueExplanation:
:::::::::::::::::::::::::
Patty took a cash advance of $1,500. Her new credit card charges an Annual Percentage Rate of 21%. The transaction fee for the cash advance is 3% of the amount of the advance, with a minimum fee of $35. This fee is added to the total cash advance, and accrues interest.
Hint: calculate 3% of 1,500. Add that 3% to the original cash advance of 1,500. This becomes your charged amount.
If Patty makes monthly payments of $65:
What is the total amount Patty will end up paying for the cash advance?
When something is evaluated according to ______, this is called finding the value on an ad valorem basis.
Answer:
its value.
Explanation:
Ad valorem is a Latin word for "according to value" and as such it simply means to evaluate something according to its value.
Hence, when something is evaluated according to its value, this is called finding the value on an ad valorem basis.
Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.
In Taxation, we have what is referred to as ad valorem tax which refers to a property tax.
Property tax is a type of tax that is charged or levied based on the value of a person's home or business. Thus, it is mainly taxed on physical assets or properties such as land, building, cars, business, etc.
Suppose most people regard emeralds, rubies, and sapphires as close substitutes for diamonds. Then DeBeers, a large diamond company, has a. less incentive to advertise than it would otherwise have. b. more control over the price of diamonds than it would otherwise have. c. less market power than it would otherwise have. d. higher profits than it would otherwise have.
Answer: less market power than it would otherwise have.
Explanation:
Following the information given that most people regard emeralds, rubies, and sapphires as close substitutes for diamonds, then it can be infered that DeBeers, a large diamond company, will have less market power than it would otherwise have.
Since the company has less market power due to other substitutes in the market, there'll be less ability for the company to fix price since customers can easily move to other products and purchase them.
Agreement and disagreement among economists
Suppose that Yakov, an economist from a business school in Georgia, and Ana, an economist from a public television program, are arguing over budget deficits. The following dialogue shows an excerpt from their debate:
Ana: Most people recognize that the budget deficit has been rising considerably over the last century. We need to find the best course of action to remedy this situation.
Yakov: I believe that a cut in income tax rates would boost economic growth and raise tax revenue enough to reduce budget deficits.
Ana: I actually feel that raising the top income tax rate would reduce the budget deficit more effectively.
The disagreement between these economists is most likely due to ___.
Despite their differences, with which proposition are two economists chosen at random most likely to agree?
A. Rent cellings reduce the quantity and quality of available housing.
B. Immigrants receive more in government benefits than they contribute in taxes.
C. Having a single income tax rate would improve economic performance.
Answer:
differing opinions on the point we are on the Laffer Curve
A
Explanation:
The Laffer Curve is a supply side economic theory developed by Arthur Laffer in 1974.
The curve depicts the relationship between tax rates and tax revenue
According to this theory, higher income tax rate reduces the incentive of labour to work and invest due to the fact that labour would have to pay higher tax. This means that at some point, increase in the tax rate would decrease government revenue rather than increase it.
The theory submits that there is an optimal tax rate at which tax income is maximised. Once this point is surpassed, increase in tax rate would reduce government revenue
Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.
Effects of a binding price ceiling
1. It leads to shortages
2. it leads to the development of black markets
3. it prevents producers from raising price beyond a certain price
4. It lowers the price consumers pay for a product. This increases consumer surplus
A rent ceiling would lead to shortage of houses and a reduction of the quality of available housing.
